Sebelius, Bredesen up for HHS spot

Kansas Gov. Kathleen Sebelius is the leading contender to replace Tom Daschle as President Obama's choice for secretary of Health and Human Services, with Tennessee Gov. Phil Bredesen also remaining under consideration, administration officials told Politico.

The officials said others might be in the mix and that a decision was likely soon.

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Sebelius, 60, is seen as a leading contender because of her close relationship Obama—she backed his candidacy over Hillary Rodham Clinton and was a top surrogate to women's groups during the campaign.

She has been on the short list for several Cabinet posts, yet said in December that she was staying in Kansas to deal with budget problems.

On the other hand, the possible choice of Bredesen has sparked an outcry from some advocates. His past job as a managed-care executive and continued ties to the health insurance industry haven't won him many admirers within the progressive health reform community, a key group that Obama would need to pass universal health care.

Opposition research has been circulated that outline that 2005 decision, and also highlights the fact that BlueCross BlueShield of Tennessee, a company with major state dealings, donated $150,000 to the renovation of the governor's mansion.

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In contrast, advocacy groups see Sebelius' eight year tenure as insurance commissioner as a significant asset to her candidacy.

Daschle's withdrawal last week after paying $100,000 in back taxes for a limo service given to him by a friend and Democratic donor left Obama with no clear backup plan. Daschle had already installed much of his staff.

He was going to wear two hats: He was also named director of a new White House Office of Health Reform, and planned to shuttle between his two offices. Now that his nomination has been withdrawn, the White House half of the job could go to someone else if it is retained.